Program Management Professional (PgMP) — Question 89

You are the program manager for your organization. You have proposed a program that will cost $750,000 and will last for four years. Management is concerned with the cost of the program in relation to the return your program will bring. If the rate of return is six percent what is the minimum value your project should return in four years based on the investment of the program?

Answer options

Correct answer: D

Explanation

The correct answer is D, $946,857, which represents the future value of the investment after four years at a six percent return rate. The other options do not account for the compounding interest over the four-year period, thus underestimating the required return on the initial investment.